Mercantile Bankshares said it has a definitive agreement to buy tiny Home Bank in Newark, Md.

Mercantile, which has assets of $6.5 billion, said it would merge $46.4 million-asset Home Bank into its Peninsula Bank on Maryland's eastern shore.

Peninsula operates 16 branches on the Delmarva peninsula. Home Bank would add five.

The agreement is subject to the approval of regulatory authorities and Home Bank stockholders.

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